What a title loan costs — before Indiana’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Indiana
- Rate cap
- Supervised consumer loans capped by tiers: 36%/yr up to $2,000, 21% on $2,000–$4,000, 15% above $4,000. Charging more than 72% APR (2× the base rate) is criminal loansharking.
- Key law
- Indiana Uniform Consumer Credit Code (IUCCC), Ind. Code 24-4.5-3-508; criminal usury: Ind. Code 35-45-7-2 (Loansharking).
- Enforcement
- The Indiana Department of Financial Institutions (DFI) licenses title/consumer lenders under the IUCCC, while the loansharking cap is enforced criminally.
Charging more than 72% APR (twice the 36% base rate in Ind. Code 24-4.5-3-508) is loansharking, a felony under Ind. Code 35-45-7-2.
What it means for a Indiana borrower
A lender can take your car title in Indiana, but only as a supervised installment loan capped by the IUCCC’s tiered rates, not the 200–300% single-payment loans seen in permissive states. Anything priced above 72% APR is criminal loansharking and the debt is legally void.
If you already have a title loan in Indiana
A loan that violates Indiana’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Indiana — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Indiana attorney general and the CFPB.
- Ask whether the balance is even collectable under Indiana law before you pay a collector.
Cheaper first — try these before a title loan in Indiana
Title Loans and tribal lenders in Indiana
Many online lenders that market title loans to Indiana residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Indiana residents and how state law applies to them, see the Indiana tribal-lending page.
Tribal loans in Indiana →Frequently asked questions
Are title loans legal in Indiana?
In Indiana, title loans are allowed only under limits — a rate cap, an installment structure, or consumer-finance licensing — so a legal title loan costs less and looks different from the ~300% single-payment norm, and any lender exceeding those limits is out of compliance.
What is the maximum title loan rate in Indiana?
Supervised consumer loans capped by tiers: 36%/yr up to $2,000, 21% on $2,000–$4,000, 15% above $4,000. Charging more than 72% APR (2× the base rate) is criminal loansharking.
What can I do about a title loan I already have in Indiana?
Because Indiana restricts high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Indiana — many high-cost online lenders are not. This is general information, not legal advice.